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Packard Bell in Pact on PC Parts Disclosure

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From Newsday

Packard Bell Electronics Inc. said Thursday that it has reached an agreement with 22 states that will require it to disclose whether its personal computers include components from previously sold computers.

The settlement by the No. 2 maker of PCs worldwide stipulates that any new computer sold after Dec. 31 must state on the carton whether it includes components from a previously sold computer. The price will be the same as a computer without recycled parts.

Sacramento-based Packard Bell will pay the states $70,000 each for costs and attorneys’ fees, for a total of $1.54 million. Packard Bell won’t pay any fines or penalties. It is also paying $3.5 million as part of a settlement involving computers sold through military post exchanges and to government agencies.

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Packard Bell lawyer Marshall Grossman said the computer maker is the first manufacturer to put used-parts disclosures on the outside of boxes. Packard Bell and others have disclosed the recycling of components inside the box.

Grossman said no state had filed a suit against the company, adding, “This is a voluntary agreement to help establish industry standards.”

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